`` Ominously, Moody's stated that they would downgrade France further (likely) if it faced substantial economic or financial shocks arising from the EZ. Fitch remains the only agency to rate France AAA. The news should not have come as a surprise, which is why markets have not reacted too negatively. The French government's response is that France is and will continue to take the measures necessary -- based on past history this seems (highly?) unlikely. I have been banging on about France for some time and remain amazed that the country's bond yields have not moved closer to equivalent Italian yields. One side effect is that the downgrade will negatively impact the rating of the EFSF/ESM;''